Startup Business Owner Salaries

• According to Career Builder, the average business owner salary in the United States, across all industries, is $44,576 annually. The bottom 25 percent of business owners earn $35,485, whereas the top earners make $64,340 per year. The Bureau of Labor Statistics states that the average chief executive officer, across all industry sectors, earns $105,440 annually. According to the United States Census data from 2007, non-farm self-employed annual earnings is $33,167. Based on these statistics, you can conclude that you will earn between $33,000 and $105,000 per year depending on certain variables.
  
  

Variables Affecting Earnings

• Earnings for an awning business owner is affected by many factors. The first variable is your experience. The more experience you have, the more contacts and references you can provide to potential customers. Industry contacts are important from the perspective that you need to find suppliers of awnings, unless you are manufacturing them yourself. However, if you are a manufacturer, you will still need suppliers of fabric and other materials. Product demand and location are considerations because if you must travel long distances then that impacts your cost of goods sold. Another variable is competition. If you are the only game in town you have pricing power; however, if not, then you must compete on a price bases.
  
  

Ways to Increase Profits

• Hiring employees is an expensive aspect of most businesses. You can reduce employment costs associated with unemployment insurance, payroll taxes, workers compensation insurance and benefits by subcontracting (workers that are not under direct control of the contractor) work. This reduces employment expenses and eliminates your need for workers compensation insurance. Also, negotiating prices with suppliers can reduce costs. Suppliers need your business and having a supplier you can count on, coupled with knowing your future costs, gives you an advantage when pricing sales contracts.
  
  

Issues Facing Startup Business Owners

• Business owners face difficulties and long hours. The owner must bring in new business, negotiate contracts, hire employees and subcontractors, obtain bonding and permits, purchase insurance, and ensure the projects are scheduled and completed on time and within budget. You are also responsible for the quality of your product. If employees fail to show up or make mistakes, it is the owner that needs to rectify any problems. You will work long hours and have a tremendous amount of responsibility beyond yourself and family.